Danone beat first-quarter sales expectations on Wednesday, as strong demand in China for infant milk formula and medical nutrition products outpaced weakness in coffee creamers in a competitive U.S. market.
The consumer goods giant, whose brands include Evian and Badoit water and Activia yoghurt, reported first quarter 2025 sales of 6.844 billion euros ($7.79 billion). That represented a like-for-like rise of 4.3%, compared with analysts’ expectations of 3.8% in a company-provided consensus.
“With a 4.3% like-for-like sales growth in Q1, we have delivered a strong start to the year, across all categories, demonstrating the strength of our execution and the relevance of our health-focused portfolio,” CEO Antoine de Saint-Affrique said in a statement.
In the current uncertain environment, marked by U.S. tariff uncertainty and weak consumer sentiment, Danone’s growing focus on health and science made its businesses more resilient, he added.
Coffee creamers in the United States have sufffered from strong competition, however, while Danone also faced supply chain issues in the first quarter that were now solved, finance chief Juergen Esser told reporters.
The company reiterated its full year 2025 forecast was in line with its mid-term ambition of like-for-like sales growth of between 3% and 5%, with recurring operating income growing faster than sales.
($1 = 0.8783 euros)
(Reporting by Dominique Vidalon)
